Tonight was the much-anticipated premiere of Project Runway All Stars, Season 2. And the designers got right down to business with their first challenge. What was their challenge? Who made the cut? Who is out? Keep reading after the jump for all the details.

This season’s all stars include Wendy Pepper, season 1, Andrae Gonzalo, season 2, Uli Herzner and Kayne Gillaspie, season 3, Suede Baum, season 5, Althea Harper, season 6, Emilio Sosa, season 7, Peach Carr, Ivy Higa, and Casanova, season 8, and Anthony Ryan Auld, Joshua McKinley, and Laura Kathleen Pranck from season 9.

The prize package this season totals $750,000 and includes:

A spread in Marie Claire and a contributing editor’s job for one-year

An all-expense paid trip around the world to Fashion Week’s in Paris, Milan, Berlin, and Tokyo

A technology suite and office space from Hewlett Packard and Intel for one-year

A sewing/embroidery studio from Brother

$150,000 cash

And a private label capsule collection with Nine West

The designers first challenge was a team mini collection based on attitude. Joanna Coles, Editor in Chief at Marie Claire pulled two names, Kayne and Joshua to begin the two teams. Each designer picked then chose the next team member until all the designers were on teams. Then they had to choose one attitude word to describe their mini collection. Each designer was responsible for one design but the entire collection had to be cohesive.

Kayne, Uli, Casanova, Ivy, Althea, Anthony, and Wendy were on a team together and they chose the word “confident” to describe their collection.

Joshua, Peach, Laura, Emilio, Andrae, and Suede made up the second team and they chose “bold” as the attitude word to describe their collection.

The designers had a budget of $250 per design. After a 30-minute shopping spree at Mood, Team Confident chose to express themselves with leather and lace, while Team Bold chose to go with the colors blue and black for their collection.

The winning mini collection went to Team Confident. Designers Casanova, Ivy, and Anthony had the highest scores, while Peach, Andrae, and Suede had the lowest scores on the losing team, Team Bold.

The judges discussed each of the three top and bottom designs to determine who was the challenge winner and who would be first to leave the show.

For the top three designs, Isaac Mizrahi said Casanova’s design “looks so expensive” but remarked that it needed to be longer.

Georgina Chapman said Ivy’s power suit was “symmetry well-placed.” While Rachel Roy added, “The jacket is so difficult to construct – for me the jacket is best.”

Anthony’s design was the “perfect balance of effortless cool with something very, very wearable for many, many women,” Rachel Roy said. Isaac added, “The pants don’t fit so well in the crotch” but he said he did like the skinny pants look. And Georgina called the design “modern and fresh.”

Then for the bottom three designs, Isaac said Peach’s “sleeve is so badly fitted.” And Rachel added if all else fails, “add some of Suede’s napkins.”

Andrae’s design was “too messy” for Georgina’s taste. She said, “I just think if we have to start asking you to explain your design, there’s a problem.”

Mondo Guerra said of Suede’s design, “the handkerchief look on the skirt looks sloppy.” And Georgina said, “I think you have two different dresses here.”

At the end of the judges’ deliberations, the top three and the bottom three designers were brought back out. Anthony was declared the mini collection winner from Team Confident and Peach from Team Bold was out.

As a final remark, Peach said, “If you’re lucky, you get to do what you love, and I love being a designer.”

What did you think of tonight’s episode? What was your favorite design? Post a comment below and let us know.